Bond ETFs have enjoyed massive popularity over the past few years and total assets now already stand at $750bn, but BlackRock is predicting this figure could double by 2022 as demand continues to grow.
fixed income ETFs
US-listed ETFs have gathered more than $28 billion in September – a new annual high – despite the Federal Reserve hinting at interest rate hikes – a move intended to return to normal monetary policy and ward off another Great Depression.
Asia Pacific ETFs have been particularly popular with investors in June, according to data from Lyxor, as low valuations in the region attract inflows. This comes at a time when valuations in developed markets are reaching peak levels, while investors continue to look for higher returns.
Investors have been taking money out of fixed income ETFs and investing in equity funds at the strongest pace in 11 months, after Donald Trump’s victory in the US Presidential Election boosted investor confidence.
Consultancy firm EY has released a new report on the outlook for the ETF markets across the globe. It is predicting ETFs in Europe will continue taking in new money to hit $1.1trn in AUM by the end of 2020, with fixed income being one of the key drivers of inflows.